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Misconception · MIS:subjective-clause-can-be-ignored-until-demand

Mistaken idea “A subjective acceleration clause can be ignored until demand”

Mistaken reasoning: This mistake applies a hoped for trigger rule instead of current probability sensitive classification and disclosure guidance.

Updated Aug 21, 2026 Review due Sep 30, 2026

Why this is mistaken

Apply current Topic 470 to the actual clause and facts. A tentative future model cannot be backdated into the current close.

Where to watch

When this mistake may appear

  • A lender has not demanded payment under a material-adverse-change clause.
Check your work

Your work may contain this mistake if:

  • The clause is omitted from the current-guidance analysis.